Chambal Fertilisers is facing a penalty uphold related to the disallowance of transitional credit amounting to Rs. 15,55,73,914 pertaining to capital goods. While the order-in-original was passed on October 9, 2024, the appellate authority upheld it on November 7, 2025. The company has already reversed the disputed transitional credit and intends to challenge the order further.
Penalty Uphold Details
An order has been passed by the Officer of the Commissioner (Appeals), Central Goods & Services Tax and Central Excise, Jodhpur, upholding a penalty against Chambal Fertilisers.
Financial Impact
The penalty upheld pertains to the disallowance of transitional credit amounting to Rs. 15,55,73,914 relating to capital goods.
Company Response
The Company has a strong case on merits, and plans to challenge the order before the appropriate forum. Importantly, the company has already reversed the disputed transitional credit before a show cause notice was issued. The order was passed on November 7, 2025.
Original Order Details
The original order was passed on October 9, 2024, by the Joint Commissioner, CGST, Udaipur.
Source: BSE
